Revenues - Kurumsal

Review of FY07 Results
Doğan Gazetecilik A.Ş.
March 28, 2008
Notice
Inflation accounting (IAS 29) is not applied in 2005&2006&2007 financials on the back of CMB’s requirements. The
financial statements are reclassed for presentation purposes, the CMB format is also available through ISE and DYH
websites.
The figures related to advertisement, which are not stated in financial statements are based on management reports and
not consistent with IFRS Figures. The market shares stated in this document are based on the estimates of various
sources which are believed to be reliable and compiled by DYH and are subject to slight revisions in one year period.
This presentation does not constitute an offer or invitation to purchase or subscription for any securities and no part of it
shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
The information contained in this document has not been independently verified. No representation or warranty express or
implied is made as to and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the
information or opinions contained herein. Neither the company nor any of its affiliates, advisors or representatives shall
have any liability whatsoever (for negligence or otherwise) with respect to any loss howsoever arising from any use by third
parties of this presentation or its contents or otherwise arising in connection with it.
2
Ad Market Share
Total Ad Market – Turkey (Est)
Newspapers – Turkey (Est)
(YTLm)
(YTLm)
19.0%
13%
3.258
2.728
ƒ Online advertising
1.018
901
and Posta continued
to outperform in
2007.
FY06
FY07
Dogan Gazetecilik Ad Growth*
(YTL m)
182,7
161,4
4,4
13.2%
10,6
advertising
revenues
which
accounts c37% of
total ad revenues
grew by 25%.
ƒ Posta improved its
140.2%
172,1
157,0
ƒ Posta
9.6%
FY06
FY07
Dogan Gazetecilik Newspaper
Ad Market Share*
17,4%
16,9%
FY06
FY07
market share from
6.2% to 6.9%.
Online
Ad
FY06
FY07
*Ad figures are adjusted for market comparison and growth figures on this page are based on these adjusted data and
nominal. Therefore, these figures will not comply with audited results presented on the following pages where the
calculation&recognition basis differs and IAS 39 is applied.
3
Market Shares
Dogan Gazetecilik did not join the super promotions of major newspapers in FY07 and lost market
share in circulation.
Posta “The best selling newspaper in Turkey” maintained its circulation levels.
Market Shares
% FY07/06
FY06Est.
FY07Est.
ADVERTISEMENT MARKET SHARE *
17,4%
16,9%
-0,5%
CIRCULATION MARKET SHARE *
23,2%
21,9%
-1,2%
Doğan Gazetecilik Daily Average
Circulation (000 units)
Milliyet
Posta
Radikal
Fanatik
1.193
281
636
36
241
1.134
233
635
36
230
-5%
-17%
0%
2%
-4%
Nationwide average circulation (000 units)**
5.148
5.170
0,4%
* Market share and market statistics are estimates based on advertising department reports and DYH estimates. Milliyet
Germany and Fanatik Germany figures are not included.
4
Major Developments in FY07
ƒ Dogan Gazetecilik enjoyed high growth in Election period in July and captured
additional market share.
ƒ Posta and online advertising continued to outperform, while Milliyet title was weaker
after the elections.
ƒ Pressure on newspaper advertising were still driven by interest rate sensitive
sectors.
ƒ Promotion campaigns shaped the circulation dynamics in FY07.
ƒ Dogan Gazetecilik slightly increased promotions in 4Q07.
ƒ Copy price increases only in Radikal newspaper in 1Q07.
ƒ The contribution of online revenues continued to be strong.
ƒ 22 million additional shares were issued increasing the paid-in capital from YTL78m
to YTL100m at YTL4.73 per share.
5
Internet traffic on the rise...
Page view
(million)
1081,7
Monthly Unique
Visitors (million)
14,9
121%
6,8
148%
News,
blogging,
video
435,5
Dec 06
Page view
(million) 69,6
Dec 06
Dec 07
82,7
19%
Dec 07
2,90
Monthly Unique
Visitors(million)
49%
Auto
Classifieds*
1,96
Dec 06
Dec 07
Dec 06
Dec 07
* arabam.com internet traffic statistics as of 2007 are derived from the data channeled from milliyet.com.tr
6
Internet traffic on the rise...
Page view
(million) 21,4
38%
29,7
Monthly Unique
Visitors (million)
40%
0,77
0,55
Real Estate
Classifieds
Dec 06
Dec 07
Dec 06
Dec 07
19,6
57%
0,54
18%
12,5
Job
Classifieds
0,46
Dec 06
Dec 07
Dec 06
Dec 07
7
Internet boosts growth..
Internet added 5 pct. points to Dogan
Gazetecilik’s Organic Growth in FY07.
Operational Profitability recovered...
EBITDA (YTLm)
Ad Revenues (YTLm)
182,3
15%
158,4
14.928
173%
14,2
168%
5,2
168,1
5.564
10%
153,2
FY06
FY07
Ad
FY06
FY07
Online
*Ad revenue and EBITDA presented on this slide are based on IFRS figures.
8
Posta overperforms expectedly..
Posta “Best Seller Newspaper” in Turkey improves Doğan
Gazetecik’s overall growth dynamics substantially.
Doğan Gazetecilik Advertisement
Revenue (growth % yoy)
Strong Election
impact in 3Q07
Posta Advertisement Revenue
(growth % yoy)
23,8
42,8
12,6
10,0
6,3
2,4
7,3
19,2
15,5
14,9
18,0 18,5
20,7
3,8
1,0
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07
3,0
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07
9
Summary Results
% Ch.
Quarterly Analy sis (Y TL '000)
4Q06
4Q07
Sales
72.963
78.583
Cost of sales
45.758
Gross profit
Operating expenses
FY 06
FY 07
8%
281.235
296.896
6%
43.183
-6%
187.674
181.686
-3%
27.206
35.400
30%
93.562
115.210
23%
27.653
36.630
32%
96.398
107.362
11%
46
(1.033)
n.m.
724
10.758
1386%
0,1%
-1,3%
0,3%
3,6%
1.238
(41)
5.565
14.928
EBITDA MARGIN
1,7%
-0,1%
2,0%
5,0%
NET PROFIT
(400)
(1.126)
(1.006)
8.833
NET PROFIT MARGIN
-0,5%
-1,4%
-0,4%
3,0%
493
197
-60%
3.560
2.910
-18%
1.192
992
-17%
4.841
4.170
-14%
EBIT
EBIT MARGIN
EBITDA
Amortised cost valuation incom
Depreciation & amortisation
4Q07/06
% Ch.
-103%
n.m.
FY 07/06
* All figures stated are based on consolidated balances. EBIT and EBITDA are adjusted by Amortised Cost Valuation
Income also presented on slide 10.
168%
n.m.
10
Revenues
Revenues (YTL '000)
4Q06
4Q07/06 Ch
(%)
4Q07
FY06
FY07/06 Ch
(%)
FY07
Circulation Revenues
Revenue (YTL '000)
Circulation (000) (daily average sales)
26.777
1.100
26.428
1.120
-1%
2%
112.326
1.193
107.973
1.134
-4%
-5%
43.743
46.921
7%
153.223
168.089
10%
1.789
4.748
165%
5.223
14.243
173%
655
487
-26%
10.464
6.591
-37%
72.964
78.583
7,7%
281.236
296.896
5,6%
Advertisement Revenues
Revenue (YTL '000)
Internet Revenues
Revenue (YTL '000)
Other Revenues
Service and other (YTL '000)
Total Revenues
ƒ Price and Volume growth driven by Posta title helped newspaper advertising revenues to increase
10% in FY07.
11
Revenues per dailies
4Q06
4Q07/06
4Q07 Ch (%)
FY06
FY07/06
FY07 Ch (%)
Milliyet
Posta
Radikal
Fanatik
European sales
(Milliyet & Fanatik)
21.836
15.681
3.788
1.949
21.457
18.924
3.579
2.460
-2%
21%
-6%
26%
77.370
54.037
13.207
6.759
76.566
67.382
13.483
8.735
-1%
25%
2%
29%
489
502
3%
1.850
1.922
4%
Doğan Gazetecilik
43.743
46.921
7,3%
153.223
168.089
10%
Milliyet
Posta
Radikal
Fanatik
European sales
(Milliyet & Fanatik)
7.082
12.874
1.037
5.027
6.824
12.964
1.077
4.989
-4%
1%
4%
-1%
30.897
52.373
4.460
21.755
25.943
53.306
4.905
21.479
-16%
2%
10%
-1%
756
573
-24%
2.841
2.339
-18%
Doğan Gazetecilik
26.777
26.428
112.326
107.973
Revenues per dailies
Advertisement Revenue (YTL '000)
Circulation Revenue (YTL '000)
-1%
-4%
12
Costs
Newsprint costs down by 6%, due to decline in FX rate
by 9% while a slight increase in newsprint cost per ton
by 3% in USD terms.
Costs
4Q06
4Q07/06
4Q07 Ch (%)
FY06
FY07/06
FY07 Ch (%)
Cost of Sales (YTL '000)
45.759
43.183
-6%
187.674 181.686
-3%
Newsprint costs*
- Average pages
26.189
35,03
23.117
38,00
-12%
8%
105.050
34,36
98.972
36,05
-6%
5%
Printing & other costs
19.570
20.066
2,5%
82.625
82.714
0,1%
Operating Expenses (YTL '000)
27.653
36.630
32%
96.398 107.362
11%
General & Administrative Expenses
Sales & Marketing Expenses
7.044
20.609
7.424
29.206
5%
42%
22.863
73.535
0%
15%
Total Costs
73.411
79.813
9%
22.850
84.512
284.072 289.048
2%
Sales & marketing expenses increased by 15% mainly due to accelerated advertising activities in 4Q07
in order to improve market share and maintain strong newspaper image. Additionally, marketing
personnel have been increased due to the extented internet activities in 2007.
13
Profitability
(YTL ’000)
4Q07/06
Ch (%)
4Q07
Profitability
4Q06
EBIT
Amortised cost valuation income
(447) (1.230)
493
197
EBIT adjusted
Other Income/(Expense) - net
Financial Income/(Expense) - ne
FY06
n.m. (2.836)
-60%
3.560
FY07/06
Ch (%)
FY07
7.848
2.910
n.m.
-18%
724
10.758
1386%
n.m.
759
-33% (1.064)
207
154
-73%
n.m.
46 (1.033) -2350%
(607)
246
(727)
165
10
(32)
n.m.
78
(2)
-102%
Profit before tax
(305) (1.628)
n.m.
497
11.118
2136%
Taxation
- Corporate tax
- Deferred tax
(95)
104
(199)
n.m. (1.503) (2.285)
61%
(334) (2.682)
n.m. (1.169)
398
n.m.
n.m.
n.m.
Net Income
(400) (1.126) n.m.
Minority
501
167
334
(1.006)
8.833
n.m.
14
Investment & Financing
Investments & Financing (YTL '000)
FY07/06
Ch (%)
FY06
FY07
CASH AND CASH EQUIVALENTS
3.339
106.334
S.T. BANK BORROWINGS
2.892
2.354
-19%
L.T. BANK BORROWINGS
2.811
-
-100%
NET CASH / (NET DEBT)
(2.364)
103.979
2.344
2.462
INVESTMENTS
3084%
-4499%
5%
15
Outlook
ƒ 2008 Ad growth is expected to be in the range of 18-20% including online
advertising under the assumption of stable macroeconomic scenario of 4-5% GDP
growth.
ƒ Posta and Online advertising are expected to be the main drivers of growth.
ƒ Further cover price adjustments are not planned.
ƒ No aggresive promotion campaigns are planned.
ƒ Acquisition of Vatan Newspaper realized as of March 13, 2008 at a consideration of
US$18m for 100% of the shares. Vatan’s financial statements will be fully
consolidated in 2Q08 results of Dogan Gazetecilik.
ƒ Positive impact of Vatan newspaper is likely to be visible in 2009.
16